The Independent Community Bankers of America, which represents about 5,000 U.S. community banks, is opposing the Digital Asset Market Clarity Act, or CLARITY Act, according to ChainCatcher. ICBA President and CEO Rebeca Romero Rainey said what she described as a loophole tied to stablecoin rewards must be fully closed, adding that there is no middle ground on the issue. The group argues that stablecoins could pull $1.3 trillion in deposits out of the banking system and reduce local lending by $850 billion. ICBA has also pushed Republican senators Josh Hawley and Jerry Moran to oppose the bill in its current form. Romero Rainey said there is no sign that crypto would replace those deposits and send them back into local communities. She also criticized a White House Council of Economic Advisers report titled “The Effect of Prohibiting Stablecoin Yield on Bank Lending,” saying it downplayed banks’ concerns about deposit outflows. The Senate is scheduled to vote on the CLARITY Act on Sept. 15. If the bill fails to secure at least 60 votes, it will not move to the next stage of consideration and could stall for the foreseeable future.
The Independent Community Bankers of America (ICBA), which represents about 5,000 U.S. community banks, is opposing the Digital Asset Market Clarity Act, or CLARITY Act, according to ChainCatcher.
ICBA President and CEO Rebeca Romero Rainey said a loophole tied to stablecoin rewards must be completely closed, adding that there is no middle ground. The group said stablecoins could move $1.3 trillion in deposits out of the banking system and cut local lending by $850 billion.
ICBA has pushed Republican senators Josh Hawley and Jerry Moran to oppose the current version of the bill. Romero Rainey also said there is no indication that crypto would replace those deposits and redirect them into local communities.
She also criticized a White House Council of Economic Advisers, or CEA, report titled “The Effect of Prohibiting Stablecoin Yield on Bank Lending,” saying it downplayed banks’ concerns over deposit outflows.
The Senate is scheduled to vote on the CLARITY Act on Sept. 15. If the bill fails to win support from at least 60 senators, it will not advance to the next stage of consideration and could stop moving forward for the foreseeable future.
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